A representative for Beats declined to comment. Representatives for Apple could not be immediately reached for comment.

Founded in 2008 by hip-hop star Dr. Dre and Interscope Geffen A&M Chairman Jimmy Iovine, Beats in January launched Beats Music, a streaming music service, to rival the likes of Swedish company Spotify, Pandora Media Inc., Google Play Music and Apple's own iTunes Radio.

For Apple, the deal would add revenue from Beats' popular, flashy headphones and give it a gateway into the subscription music industry. Last year, Apple launched iTunes Radio, a free, ad-supported streaming service.

Beats Music charges $10 a month for access to its song library on the Web and mobile devices. The company also partnered with AT&T to offer a $15-a-month family plan. It has not disclosed its number of subscribers.

Sixteen years after SpongeBob SquarePants first appeared on television, the yellow animated character made a splash on the big screen this weekend with the release of "The SpongeBob Movie: Sponge Out of Water."